Oportun applies for National Bank Charter, aims to advance economic equity through financial inclusion

By Pavithra R

Oportun Financial Corporation, a mission-driven financial institution providing inclusive, affordable financial services has announced applying to establish Oportun Bank, N.A. with the Office of the Comptroller of the Currency (OCC) to extend its mission to all 50 states.

A national bank charter will enable the company to reach all of the estimated 100 mn low- and-moderate income (LMI) consumers in the U.S. that the company seek to serve. Currently, Oportun maintains dozens of state licenses to offer affordable and responsible financial services to LMI communities. As a national bank, the firm can efficiently provide the security of dealing with a federally regulated and supervised bank to its customers and other stakeholders. 

Currently, Oportun’s core product is a fully amortized personal loan with an APR that is capped at 36%. The Bank will similarly cap all of its credit products at a 36% APR. Its loans are transparent, carry no hidden fees, and are designed for customer success.

“A national bank charter will allow us to reach the estimated 100 million low- and-moderate income (LMI) consumers in the U.S. that we seek to serve. Today, Oportun maintains dozens of state licenses in order to offer affordable and responsible financial services to LMI communities. As a national bank, we can efficiently provide the security of dealing with a federally regulated and supervised bank to our customers and other stakeholders. Our existing and potential customers are hard-working people who have historically been shut out of the financial mainstream. By providing the responsible banking services that these communities need, Oportun is advancing the cause of economic equity and financial inclusion for LMI individuals,” said Raul Vazquez, CEO of Oportun. 

The proposed bank will be a wholly-owned subsidiary of Oportun Financial Corporation, a public company incorporated in Delaware with its principal place of business in San Carlos, California. As a national bank, Oportun will add depository products to consumer lending and be able to offer these affordable and accessible banking services to LMI individuals in all 50 states. Additionally, by leveraging its proprietary lending platform, Oportun Bank will be able to sustainably serve LMI consumers nationally with consumer banking services. The firm plans to implement a robust strategic Community Reinvestment Act (CRA) plan that helps to uplift LMI communities. The bank will also seek deposits from non-profit organizations, socially conscious individuals, foundations, corporations and other entities that are seeking to support underserved communities.

Established in 2005, Oportun has extended more than $9.3 bn in credit, primarily to people living in LMI communities. Its mission-based, technology-powered approach is designed to be inclusive, affordable, and empowering.